Getting You There… US DOT Programs and Services Maryland Department of Transportation

1. Getting You There… US DOT Programs and Services Maryland Department of Transportation November 15, 2011 Tiffany King, Project Director Mid Atlantic SBTRC/ GPMBSA Paul Erdosy, Project Coordinator Mid Atlantic SBTRC

2. Key Topics • Overview of the US DOT & OSDBU • The SBTRCs • What Role Do the Small Business Transportation Resource Centers Play? • Who Do the SBTRCs Serve? • SBTRC Programs & Services • Bonding Education Program • Women & Girls Internship Program • Short Term Lending Program • Additional Technical Assistance Services (Financial Counseling, Procurement, Certification, Business Development, etc.)

3. US DOT AND OSDBU OVERVIEW

4. US DOT Overview Mission • Serve the United States by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future. Statutory Authority • The Department of Transportation was established by an act of Congress on October 15, 1966. The Department’s first official day of operation was April 1, 1967.

5. DOT Organizational Structure • 11 Contracting Organizations • Approximately 60,0000 employees nationwide • Office of the Secretary of Transportation (OST) Secretary Ray LaHood (16th Secretary) • 10 Operating Administrations (OAs) • The OAs are focused on a particular transportation mode (mass transit) or activity (safety)

6. DOT Operating Administrations • Federal Aviation Administration (FAA) • Federal Highway Administration (FHWA) • Federal Motor Carrier Safety Administration (FMCSA) • Federal Railroad Administration (FRA) • Federal Transit Administration (FTA) • Maritime Administration (MARAD) • National Highway Traffic Safety Administration (NHTSA) • Pipeline and Hazardous Materials Safety Administration (PHMSA) • Research and Innovative Technology Administration (RITA) • Saint Lawrence Seaway Development Corporation (SLSDC)

7. OSDBU MISSION • To ensure that small business policies and goals of the Secretary of Transportation are implemented in a fair, efficient, and effective manner to serve small businesses. • To implement DOT's activities on behalf of small businesses, in accordance with Sections 8, 15, and 31 of the SBA, as amended. • To provide opportunities, technical assistance, and financial services to the small business community.

8. OSDBU STRUCTURE 4 Divisions to Ensure Contract Fairness • Procurement Assistance • Financial Assistance • National Information Clearing House • Regional Partnership Division

9. Regional Partnership Division • Oversees the SBTRCs - Small Business Transportation Resource Centers • SBTRCs prepare businesses to compete for federal, state and local transportation contracts. • We also work closely with State DOTs and local transportation agencies to assist businesses.

10. Mid-Atlantic Small Business Transportation Resource Center -Headquartered in Philadelphia- Operated by the Greater Philadelphia Minority Business Strategic Alliance (GPMBSA) -Serving small and disadvantaged businesses in Pennsylvania, Delaware, Maryland, Washington DC, and Ohio -Provides assistance with OSDBU programs, i.e. STLP and DBE BEP -Provides counseling, technical assistance, training, and information dissemination to businesses that have or have the potential to do business with public and private entities in the transportation industry

11. Who Do SBTRCs Serve? • Our Primary Customers: • Small Businesses (SB) • Small Disadvantaged Businesses (SDB) • 8(a) firms • Woman-Owned Businesses (WOB) • Historically Underutilized Business Zone (HUB Zone) Businesses • Veteran-Owned Small Businesses (VOSB) • Service-Disabled Veteran-Owned Small Businesses (SDVOSB) • Disadvantaged Business Enterprises (DBE) We also assist businesses seeking these certifications

12. DBE Program Unique to transportation sector and under the jurisdiction of the US Department of Transportation Federal law mandates that DBE goals are set when federal funds are utilized for transportation projects Certification is done by transportation and/or certification agencies in each state

13. Doing Business with DOT • Two Distinct Contracting Programs • Direct Contracting • Federal Financial Assistance to State and Local Transportation Agencies • DBE Program • State and Local Transportation Agencies

14. US DOT Procurement Forecast www.osdbu.dot.gov/procurement/

15. US DOT Procurement Forecast by category

16. BONDING EDUCATION PROGRAM (BEP) PROGRAM OVERVIEW

17. US DOT has developed this program to: • Help disadvantaged businesses become bondable • Increase the number of small and disadvantaged business who can compete for contracts • Help small businesses GROW

18. The BEP seeks to improve bondability through assisting contractors in better addressing the 3 Cs: • Capacity • Ability to Perform • Character • References and Reputation • Capital • Financial Strength

19. Bonding Success! • Hayden Hall, President of Trinmar Contracting Services, Inc., a DBE & 8(a) firm • Obtained a bond for a $3.2 million project, (previous largest bond was $1 million)

20. Tom Le, President of SCW an HVAC, plumbing and electrical Company in Maryland • SCW, Inc. increased its bonding capacity from $350,000 to $1 million

21. Bonding Resources • National Association of Surety Bond Producers (NASBP) • www.nasbp.org • Surety Information Office (SIO)- • www.sio.org • Surety and Fidelity Association of America (SFAA)- • www.surety.org

22. US DOT Entrepreneurial Training Women and Girls Internship Program

23. History Initiative from White House Council on Women and Girls Pilot program implemented by U. S. DOT/OSDBU in Fall 2009 Entrepreneurial Training Women and Girls Internship Program

24. Goals of the Program: To increase the participation of women in the transportation industry The program was designed to educate young women on the exciting opportunities available in the transportation infrastructure industry and inspire them to enter the science, engineering, and technology fields. Entrepreneurial Training Women and Girls Internship Program

25. Entrepreneurial Training Women and Girls Internship Program Impact of the Program • 250 Women have participated in the program • 115 of transportation-related businesses and organizations have participated • 6 Program participants have received full-time employment opportunities

26. Short Term Lending Program (STLP) PROGRAM OVERVIEW

27. Getting You There Means “What?” • How do we get there with USDOT Small Business Programs and Services? • Identifying Contracting Opportunities • Providing Access to Capital Resources • Taking Advantage of Educational Training • Leveraging the SBTRC National Network

28. SHORT TERM LENDING PROGRAM (STLP) DESCRIPTION • PROVIDES A LOAN GUARANTEE ON A REVOLVING LINE OF CREDIT • PRIMARY COLLATERAL IS RECEIVABLES FROM TRANSPORTATION CONTRACT(S) • PARTICIPANTS CAN APPLY FOR RENEWAL FOR UP TO 5 YEARS

29. Cont. STLP Program Description MAXIMUM LOAN AMOUNT $750,000 SUBCONTRACT AT ANY TIER IN TRANSPORTATION RELATED FIELD APPLICATION FEE OF $150.00 PAYABLE TO THE BANK INTEREST RATE IS CURRENTLY 6-6.5%

30. STLP ELIGIBILITY REQUIREMENTS CERTIFIED AS A DBE UNDER THE DOT CERTIFICATION GUIDELINES (49 CFR, PART 23 & 26) OR CERTIFIED BY THE U.S. SMALL BUSINESS ADMINISTRATION SECTION 8(A) PROGRAM, HUBZONE, DISABLED VETERAN OR SERVICE DISABLED VETERAN OWNED BUSINESS (b) HAVE A CURRENT TRANSPORTATION-RELATED CONTRACT (c) MUST BE CURRENT ON FEDERAL TAXES

31. STLP ELIGIBLE ACTIVITIES • Maintenance, rehabilitation, restructuring, improvements, or revitalization of any of the nation’s transportation modes – public, commercial, Federal, State, or local agency • Funds may NOT be used for: contract mobilization; equipment purchases or other long term uses; refinance of existing debts; payment of non-current taxes; distributions or other payments to stock holders

32. PROGRAM ADMINISTRATION • The STLP is administered by the DOT OSDBU through cooperative agreements between DOT and several STLP Participating Lenders (PLs) • Loan documentation and financing transactions are performed by the Participating Lender (PL) • Loan application processing turnaround is 30-60 days

33. FUNDS ADMINISTRATION • Funds are borrowed against each invoice of the contract (s) • Repayment occurs as the project owner or prime contractor pays the invoice. • Payment is made jointly to the borrower and to the PL Bank and is sent to the bank, which repays the amount borrowed against the invoice and transmits the balance to the borrower

34. HOW TO APPLY: KEY STEPS ESTABLISH ELIGIBILITY COMPLETE APPLICATION & PREPARE PROPER DOCUMENTATION SUBMIT COMPLETED APPLICATION & FEE TO PARTICIPATING LENDER

35. Best Practices for Success Character Communication Develop and maintain your banking relationship Check your credit score

36. (STLP) Short Term Lending Program Participating Lenders Cardinal BankKathy SpeakmanVP, Commercial Lending1776 K Street, NWWashington, DC  20006 Telephone: (202) 331-3957Email: kathryn.speakman@cardinalbank.comWebsite: www.cardinalbank.com Industrial BankSharon B. Zimmerman, Vice President 8700 Georgia Avenue, Suite 305Silver Spring, MD 20910 Telephone: 202-722-2000 ext. 3122 E-mail: szimmerman@industrial-bank.com Website: www.industrial-bank.com Virginia Commerce BankK. Russell Marsh, Vice PresidentGovernment Contract Lending4221 Walney Road, Suite 3000Chantilly, VA 20151Telephone: (703) 961-2562Fax: (703) 378-2942Email: rmarsh@vcbonline.comWebsite: www.vcbonline.com

37. US DOT OSDBU Website • www.osdbu.dot.gov • US DOT Small Business Procurement Forecast • http://osdbuweb.dot.gov/Procurement/index.cfm • Bonding • http://osdbu.dot.gov/bap/bep_main.cfm • Financial Assistance • http://osdbuweb.dot.gov/financial/index.cfm • Women & Girls Internship Program • http://osdbu.dot.gov/WG/ • Short Term Loan Program • http://osdbu.dot.gov/financial/stlp.cfm OSBDU Website Resources

38. For more information: Tiffany King GPMBSA / Mid Atlantic SBTRC Email: tking@gpmbsa.com Paul Erdosy Mid Atlantic SBTRC Email: perdosy@gpmbsa.com Call: 215-399-0062